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i think the idea was that the business owner takes all the risk, while an employee can simply change jobs. at least that was the idea…
by kmlx 4y ago
i think the idea was that the business owner takes all the risk, while an employee can simply change jobs. at least that was the idea…
- deleted 4y ago[deleted]
- deleted 4y ago[deleted]
- lupire 4y agoOwner takes no risk. With they are already rich so losing the business doesn't matter, or they are operating an LLC on a loan that discharges in bankruptcy.
- pclmulqdq 4y agoMost business owners actually do risk something, or at least give up possible guaranteed income to start their business.
- tw98521358 4y agoNot usually. Llc is a bad tax structure so successful businesses don’t often use it. Also if you ever take a business loan you are personally on the hook for the whole thing. Personal guarantees are the worst and you can’t really get out of them
- adrr 4y agoStartup employees take the same amount of risk by giving up salary for equity. From a strictly odds perspective, most early stage startup employees are better off working a corporate job and pocketing and investing the delta in cash comp.
- kmlx 4y agoyes, you are right, but startups are a niche in the grand scheme of things.